PracticeAudit‘Audit cap need not be a zero-sum game’

'Audit cap need not be a zero-sum game'

The chief executive of Independent Audit says a cap on audit liability would be of benefit if accompanied by audit reports which actually included 'meaningful information content'.

Link: DTI may fast-track liability cap

Jonathan Hayward said granting firms a limit on their liability would be met by objection over the idea that ‘auditors profits go up while their responsibility to investors goes down’.

But, he said in a letter to the Financial Times, it need not be a ‘zero sum game’.

‘The government should allow auditors the lower liability in return for audit reports that actually communicate something useful.’

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